Skip to content
Subscriber Only

Puerto Rico’s Lifeblood Choked Off as Credit Access Ends

No state or city with a credit rating as low as Puerto Rico’s has been able to access bond markets since at least 1990, a situation that may cut off the lifeblood of the commonwealth’s finances.

On July 1, Moody’s Investors Service cut the island’s rating to B2, five steps below investment grade. No local government has borrowed at that level, according to data compiled by Bloomberg. Prices on its general-obligation debt yesterday plummeted to record lows.